Optimal Pricing and Ordering Decisions in a Two-Stage Perishable Inventory System

• Main Authors: Yi-Shen Chen, 陳懿璿
• Other Authors: Jen-Ming Chen
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/18494748072287915289

碩士 === 國立中央大學 === 工業管理研究所 === 90 === This paper deals with the joint decisions on pricing and ordering for a monopolistic retailer who sells perishable goods with a fixed lifetime or demand period. The newsvendor-typed problem is formulated as a two-stage inventory system where the first stage represents the inventory of fresh or new-arrival items and the second stage represents the inventory of items that are older but still usable. Demand may be for either fresh items or for somewhat older items that exhibit physical decay or deterioration. The retailer is allowed to adjust the selling price of the deteriorated items, which stimulates demand and reduces excess season-end or stale inventory. This paper develops a stochastic dynamic programming model that solves the problem of preseason decisions on ordering-pricing and a within-season decision on markdown pricing. We also develop a fixed-price model as a benchmark against the dual-price dynamic model. To illustrate the effect of the dual-price policy on expected profit, we conduct an in-depth comparative study between the two models.